Does B Bops specify the bookkeeping procedures a franchisee must employ?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
and Service Fee. Franchisee agrees to pay Company a monthly royalty and service fee equal to five percent (5%) of gross sales (as defined in Section 9(D)
hereof) generated by the Franchise during each calendar month (or portion thereof), beginning with the calendar month in which the Franchise opens for business and continuing for each subsequent calendar month during the Term hereof. Payment of the royalty and service fee shall be made to Company no later than the twentieth (20th) day of the calendar month following the calendar month for which the royalty and service fee is being paid. Such payment shall be accompanied by a gross sales report in a format prescribed by Company which shall specify the gross sales of the Franchise for the immediately preceding calendar month.
- C. Advertising Fee.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, B Bops requires franchisees to submit a gross sales report in a format prescribed by the company. This report must specify the gross sales of the franchise for the preceding calendar month. Franchisees must submit this report along with the royalty and service fee, which is 5% of gross sales, by the 20th day of the following month.
While the FDD excerpt specifies the requirement to provide a gross sales report in a format prescribed by B Bops, it does not detail the specific bookkeeping procedures a franchisee must employ to generate this report. The franchisee is responsible for tracking and reporting gross sales accurately to calculate the royalty and service fee owed to B Bops.
A prospective franchisee should inquire with B Bops about the specific requirements for bookkeeping and financial reporting. Understanding these requirements is crucial for maintaining compliance and accurately calculating fees. Further clarification from B Bops on recommended or required accounting software, chart of accounts, and record-keeping practices would be beneficial for a potential franchisee.